Taiwan Semiconductor Manufacturing Company announced Thursday that it plans to invest $ 100 billion (around Rs 7.33.620 billion) over the next three years to meet growing demand as a global shortage of chips makes the car – and other industries.
The announcement came after U.S. chip titan introduced Intel last week with plans to spend $ 20 billion (around 1.46,750 rupees) to build two new plants in Arizona to increase production at home and abroad increase.
Intel’s move comes as countries and companies in these regions are trying to reduce reliance on Asia’s facilities for semiconductors used in a growing number of products such as automobiles.
Taiwanese high-tech chip foundries are some of the largest and most advanced in the world, and European and US automakers have reached out to Taipei for help removing the bottlenecks.
TSMC, the world’s largest manufacturer of custom microchips, said its new investment plans would add capacity to keep up with demand. There was no indication of where the new foundries would be built.
“We are in a phase of higher growth as the multi-year megatrends of 5G and high performance computing are expected to fuel the strong demand for our semiconductor technologies in the next few years,” it said in a statement.
“In addition, the COVID-19 pandemic is accelerating digitization in every respect.”
The company said the auto industry was a top priority, but warned that factories were already at full capacity.
Semiconductor shortages caused by changes in supply chain priorities due to the coronavirus pandemic has forced some major automakers to shut down production lines.
The shortage also appears to be spreading to a wide variety of electronic devices, including smartphones, game consoles, tablets, and laptops.
Most of TMSC’s factories are located in Taiwan, where they specialize in making some of the smallest and fastest chips in the world.
Last year the company announced it would spend $ 12 billion (around Rs.88,050) on a state-of-the-art semiconductor foundry in Arizona, the second manufacturing facility in the United States.
Taiwan has announced that it will attempt to ramp up chip production, but a worsening drought could hamper its plans and the government has warned it is preparing “for the worst”.
The manufacture of semiconductors is a water-intensive industry.
The dry spell came when typhoons ceased to land in Taiwan for the first time in 56 years and some reservoirs fell to their lowest levels in years.
© Thomson Reuters 2021
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